Medicare patients gain access to hemp CBD gummies and edibles through a new pilot program, marking a historic integration into mainstream healthcare.
As of next month, hemp-derived CBD gummies and edibles will be available for Medicare patients through the Substance Access Beneficiary Engagement Incentive (BEI), otherwise known as the Medicare hemp pilot. The program will be administered by the Center for Medicare and Medicaid Innovation (CMMI).
The Medicare hemp pilot is part of a larger program known as ACO REACH (Accountable Care Organization Realizing Equity, Access, and Community Health), which is designed to enhance care coordination, promote health equity, and lower costs for traditional Medicare patients. Operating from 2023–2026, it replaces the Global and Professional Direct Contracting (GPDC) Model with a focus on provider-led organizations, high-needs populations, and underserved communities.
On Wednesday, Louisville-based organic CBD manufacturer Cornbread Hemp announced that under the program, it had secured an exclusive contract with Alliant Purchasing, a national Group Purchasing Organization (GPO) whose member network includes ACOs participating in the Medicare hemp pilot. Under that contract, Cornbread Hemp will supply its hemp CBD products to some 68,000 healthcare provider locations nationwide.
The CMMI Medicare hemp pilot marks the first time hemp-derived CBD products will be available to Medicare recipients through participating ACOs, which represents a historic shift in federal healthcare policy. Never before have medical hemp products made their way inside the mainstream healthcare system.
Under the program, participating may elect to offer eligible Medicare beneficiaries up to $500 per year in hemp products, furnished directly by a qualified physician as part of a documented clinical consultation. Medicare itself does not pay for the products; the cost is borne by the participating ACO as part of their model participation.
Cornbread Hemp becomes not a vendor seeking access but the designated exclusive provider of hemp CBD products by the GPO network.
"Cornbread Hemp was built on a simple conviction" that clean, organic, rigorously tested hemp products can meaningfully improve people's lives," said Eric Zipperle, co-founder and CEO, Cornbread Hemp. "The CMMI pilot is the most important moment in the history of the hemp industry, and we believe Cornbread is uniquely positioned to serve it. We have the certifications, the infrastructure, the brand reputation, and the category expertise to deliver for Medicare beneficiaries who deserve access to the best hemp products America produces."
Under the contract, Alliant members will be able to access Cornbread's hemp CBD through the same institutional supply chain they use for medical supplies and services, subject to each organization’s Center for Medicare and Medicaid Services -approved Implementation Plan.
"Cornbread Hemp provides alternative wellness solutions that support restorative sleep, alleviate stress and anxiety, and offer effective pain management for those seeking non-narcotic or more natural, organic options," said Brandy Fehrenbach, RN, BSN, Chief Clinical Officer at Alliant Purchasing. "As the healthcare and legislative landscapes evolve, these products are increasingly being integrated into clinical discussions at the provider level across many states. We are excited to align with a partner that shares our deep commitment to prioritizing patient outcomes and holistic care."
Under CMS rules, all hemp products used in the pilot must contain no more than 0.3% delta-9 THC; must exclude inhalable formats; must contain no more than 3mg per serving of tetrahydrocannabinol in orally administered form; and must exclude any cannabinoids not naturally produced by the cannabis plant. Products must also be tested by an independent third party for potency, contaminants, and microbial hazards.
The CMMI pilot operates within a federal hemp definition that is subject to change this year. Absent congressional action, the federal definition of a legal hemp product will narrow significantly on November 12, 2026 — reducing the allowable THC threshold to 0.4mg per container. That change would negatively affect the range of products eligible for the BEI and the broader commercial hemp market.
Cornbread Hemp says it is "actively engaged in federal policymaking on this issue" and maintains "working relationships" with all of the Kentucky congressional delegation and members of the California delegation. Company cofounder Jim Higdon has been elected to serve as chairman of the US Hemp Roundtable this year.
“The stakes of the November deadline for ACO participants and patients couldn’t be higher,” said Higdon. “That’s why Cornbread is committed to engage in the policy debate on their behalf, and we are confident that the program's clinical momentum will help make the case for a workable federal definition before the November deadline."